The Time That It Takes for an Discretionary Policy to Actually

question 31

Multiple Choice

The time that it takes for an discretionary policy to actually influence economic activity is called the

• A)implementation lag.
• B)effectiveness lag.
• C)recognition lag.
• D)legislative lag.

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Definitions:

President's Budget

The President's Budget is a comprehensive proposal by the executive branch outlining the government's expected revenues, spending, and policies for the fiscal year.

Economic Report

A document or release that details the current state of the economy or analyzes economic indicators, trends, and policies.

Continuing Resolutions

Budget agreements that allow agencies, in the absence of an approved budget, to spend at the rate of the previous year’s budget.

Government Transfer Programs

Policies and initiatives where the government redistributes income through mechanisms such as social security, welfare, and unemployment benefits.